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Post by boca1girl on Feb 27, 2019 15:50:01 GMT -5
Fidelity's rate paid dropped to 3.125% today, but no additional shares of mine have been returned, (about 92% are out on loan). So the annual rate is 3.125%. If you are a Mannkind long and supporter of the company, why lend the shares? Ultimately, a suppressed share price causes greater dilution and adversely impacts SP and the money you could make on the equity? If there were 40mm less shares out today and the company had an additional $30 - $40 mm in the bank, SP would be a whole lot higher now. Are you making pennies at the expense of dollars? Its your money and investment to do with as you please but seems counterproductive. We have had this conversation on this board before. I have lost a lot of real money on leaps that have expired worthless over the years (pre FDA approval long) and I have an average cost basis above $3. With the interest I’ve earned I have purched more shares to help reduce my cost basis. My financial friends have been laughing at me for years. If I thought I could start the mythical short squeeze by calling back my shares, I would do it in a heart beat.
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Post by morfu on Feb 28, 2019 18:38:35 GMT -5
So the annual rate is 3.125%. If you are a Mannkind long and supporter of the company, why lend the shares? Ultimately, a suppressed share price causes greater dilution and adversely impacts SP and the money you could make on the equity? If there were 40mm less shares out today and the company had an additional $30 - $40 mm in the bank, SP would be a whole lot higher now. Are you making pennies at the expense of dollars? Its your money and investment to do with as you please but seems counterproductive. We have had this conversation on this board before. I have lost a lot of real money on leaps that have expired worthless over the years (pre FDA approval long) and I have an average cost basis above $3. With the interest I’ve earned I have purched more shares to help reduce my cost basis. My financial friends have been laughing at me for years. If I thought I could start the mythical short squeeze by calling back my shares, I would do it in a heart beat. Last year 7/20 I wrote in this very thread: "Choose what side you are on and stick with it. Could you please clarify which loaning I should feel bad about: - the shares I put on loan about two years ago or - the shares I bought from the interest for that nicely paid by the shorts every month? To me neither seems to have any impact on the current price.. while I am gaining shares"
At the current market situation (there seems to be an awful lot of sellers for whatever reason), you could start to loan out without feeling bad about it.. In fact that might be the only way you could stop other people from loaning.. dilute their income until they dont want to loan anymore.. after all there is a reamining risk that the securer of the loan (Fidelity in my case) might be bankrupt..
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Post by boca1girl on Mar 4, 2019 11:08:24 GMT -5
Rate paid at Fidelity down to 3.0% today.
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Post by bigchungus91354 on Mar 4, 2019 11:34:42 GMT -5
We have had this conversation on this board before. I have lost a lot of real money on leaps that have expired worthless over the years (pre FDA approval long) and I have an average cost basis above $3. With the interest I’ve earned I have purched more shares to help reduce my cost basis. My financial friends have been laughing at me for years. If I thought I could start the mythical short squeeze by calling back my shares, I would do it in a heart beat. Last year 7/20 I wrote in this very thread: "Choose what side you are on and stick with it. Could you please clarify which loaning I should feel bad about: - the shares I put on loan about two years ago or - the shares I bought from the interest for that nicely paid by the shorts every month? To me neither seems to have any impact on the current price.. while I am gaining shares"
At the current market situation (there seems to be an awful lot of sellers for whatever reason), you could start to loan out without feeling bad about it.. In fact that might be the only way you could stop other people from loaning.. dilute their income until they dont want to loan anymore.. after all there is a reamining risk that the securer of the loan (Fidelity in my case) might be bankrupt..
How does one go about loaning their shares? Is it a long term commitment?
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Post by morfu on Mar 4, 2019 17:08:22 GMT -5
Last year 7/20 I wrote in this very thread: "Choose what side you are on and stick with it. Could you please clarify which loaning I should feel bad about: - the shares I put on loan about two years ago or - the shares I bought from the interest for that nicely paid by the shorts every month? To me neither seems to have any impact on the current price.. while I am gaining shares"
At the current market situation (there seems to be an awful lot of sellers for whatever reason), you could start to loan out without feeling bad about it.. In fact that might be the only way you could stop other people from loaning.. dilute their income until they dont want to loan anymore.. after all there is a reamining risk that the securer of the loan (Fidelity in my case) might be bankrupt..
How does one go about loaning their shares? Is it a long term commitment? For small fish like me I only know two ways.. own an account with Fidelity or Schwab and transfer yoru shares there. For Fidelity you then can chat with a representative to get the right form and details. They sayit can be cancled at anytime, but I didnt try that so far.
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Post by traderdennis on Mar 4, 2019 19:02:37 GMT -5
Last year 7/20 I wrote in this very thread: "Choose what side you are on and stick with it. Could you please clarify which loaning I should feel bad about: - the shares I put on loan about two years ago or - the shares I bought from the interest for that nicely paid by the shorts every month? To me neither seems to have any impact on the current price.. while I am gaining shares"
At the current market situation (there seems to be an awful lot of sellers for whatever reason), you could start to loan out without feeling bad about it.. In fact that might be the only way you could stop other people from loaning.. dilute their income until they dont want to loan anymore.. after all there is a reamining risk that the securer of the loan (Fidelity in my case) might be bankrupt..
How does one go about loaning their shares? Is it a long term commitment? IIRC at Fidelity, you need an asset size of 250K or better in all accounts managed by Fidelity. The shares you want to lend must not be margined. I think Schwab has a lower minimum, but they pay less interest most of the time.
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Loan Rate
Mar 4, 2019 20:39:16 GMT -5
via mobile
Post by sportsrancho on Mar 4, 2019 20:39:16 GMT -5
I member a long time ago somebody checking into it and they were doing it for 100k, but you had to maintain that level, so if the stock went down you were out.
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Post by boca1girl on Mar 6, 2019 11:48:43 GMT -5
Rate paid down to 2.875% at Fidelity today. I have shares that were returned a couple of weeks ago that have not gone back out.
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Post by anderson on Mar 7, 2019 7:31:03 GMT -5
I member a long time ago somebody checking into it and they were doing it for 100k, but you had to maintain that level, so if the stock went down you were out. Fidelity has 2 ways to qualify for the loan program. Either 250k in all managed accounts or 100k in the security you want to lend. Also Schwab does not have any qualifying requirements you just have to call them to get into the loan program, but they use to pay a lower rate than Fidelity. Then there is IB(interactive brokers). One of my friends was loaning on there but rates fluctuated wildly.
Btw still all loaned out and haven't had any shares returned even with the low rate.
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Post by bigchungus91354 on Mar 7, 2019 9:15:45 GMT -5
What percent was the short interest when this was paying a 40%+ borrow rate?
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Post by parrerob on Mar 7, 2019 10:00:16 GMT -5
I believe it was second half of september 2017 (You can also check at the beginning of this thread).... Short rate was around 23 Million shares. But i was the period of the spike to 6+$ Immediately after that there was a dilution (Still the biggest mistery in MNKD story for me: considering all the adversity against our company and the fact that everybody was mentioning bankrupt at that stage... The company was able to dilute at 6$) so more shares available etc etc.....
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Post by traderdennis on Mar 7, 2019 11:44:34 GMT -5
I believe it was second half of september 2017 (You can also check at the beginning of this thread).... Short rate was around 23 Million shares. But i was the period of the spike to 6+$ Immediately after that there was a dilution (Still the biggest mistery in MNKD story for me: considering all the adversity against our company and the fact that everybody was mentioning bankrupt at that stage... The company was able to dilute at 6$) so more shares available etc etc..... In my opinion Deerfield ran a pump and dump on the stock. They figured if the company goes bk they loose out on 50+ million dollars. So df starts to creTe a short squeeze. The book runner hypes the stock. Df then sells above six and shorts the way back to 3. Not only did they get the company 60 million in operations. They probably made another 20 million manipulating the stock during the pump and dump. I can’t prove it.
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Loan Rate
Mar 7, 2019 11:47:19 GMT -5
via mobile
Post by traderdennis on Mar 7, 2019 11:47:19 GMT -5
I believe it was second half of september 2017 (You can also check at the beginning of this thread).... Short rate was around 23 Million shares. But i was the period of the spike to 6+$ Immediately after that there was a dilution (Still the biggest mistery in MNKD story for me: considering all the adversity against our company and the fact that everybody was mentioning bankrupt at that stage... The company was able to dilute at 6$) so more shares available etc etc..... In my opinion Deerfield ran a pump and dump on the stock. They figured if the company goes bk they loose out on 50+ million dollars. So df starts to creTe a short squeeze. The book runner hypes the stock. Df then sells above six and shorts the way back to 3. Not only did they get the company 60 million in operations. They probably made another 20 million manipulating the stock during the pump and dump. Df probably would of been good with a dilution at 3 but the hysteria during the week made the stock go to six. I can’t prove it. Retail lost a ton of money and probably still holding the bag. it.
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Post by sportsrancho on Mar 7, 2019 12:10:28 GMT -5
In my opinion Deerfield ran a pump and dump on the stock. They figured if the company goes bk they loose out on 50+ million dollars. So df starts to creTe a short squeeze. The book runner hypes the stock. Df then sells above six and shorts the way back to 3. Not only did they get the company 60 million in operations. They probably made another 20 million manipulating the stock during the pump and dump. Df probably would of been good with a dilution at 3 but the hysteria during the week made the stock go to six. I can’t prove it. Retail lost a ton of money and probably still holding the bag. it. Using the label change as the catalyst correct?
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Post by traderdennis on Mar 7, 2019 19:40:09 GMT -5
Using the label change as the catalyst correct? yeah, I think MNKD had submitted the label change as a catalyst which moved the stock a bit. DF took over from there. They took a lot of risk for the pump and dump, but I guess they were looking at huge losses in a BK so it was worth it.
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